--- title: "Tesla Gives Up on $25,000 Model 2 in Favor of Robotaxis: Report" description: "Tesla CEO Elon Musk is \"all-in\" on robotaxis, and perhaps as a consequence, the company's long-awaited cheap EV has reportedly been canceled." date: "2024-04-05" modified: "2024-04-05" authors: - name: "Adam Ismail" job_title: "Senior Editor" link: "https://www.thedrive.com/authors/adam-ismail" url: "https://www.thedrive.com/news/tesla-gives-up-on-25000-model-2-in-favor-of-robotaxis-report" categories: - "News" - "News by Brand" - "Tesla News" tags: - "Electric Vehicle" - "model 3" - "sedan" - "Tesla" --- # Tesla Gives Up on $25,000 Model 2 in Favor of Robotaxis: Report ![]() *A new Tesla Model 3 "Highland" is on display at the China International Import Expo in November 2023. \VCG via Getty Images\* The ever-mythical, $25,000, sub-[Model 3]() Tesla. The EV for *everyone*. At this point, I can barely remember when I first learned of its supposed existence, nor can I recall all of the times it was supposed to be revealed and wasn't. According to *[Reuters]()*, we'll be waiting a good sight longer, possibly even forever, because the manufacturer has reportedly canceled the vehicle. Don't fret, though: The [rumored Model 2's]() platform shouldn't die in vain, as it's expected to eventually underpin Tesla's future robotaxi, which supposedly very much still is happening. *Reuters* attributes this development to "three sources familiar with the matter," and having seen "company messages" pertaining to the decision itself. [Tesla]() CEO Elon Musk quickly refuted the article, [posting "Reuters is lying (again)" on X](), because that must be the conclusion whenever a journalist reports anything Musk would rather the public didn't know, or think. Regardless, one source told the news organization that "Elon’s directive is to go all in on robotaxi," while another stated that the Model 2's cancellation was announced internally in late February. One of the communications *Reuters* had seen supposedly contained a program manager telling engineering staff to wait before informing suppliers "about program cancellation." Musk still appears to believe robotaxis represent "the future of mobility," in *Reuters'* words, though another individual with knowledge of the company's plans says that they're not final. "I’d like to thank everyone for all your hard work and dedication to pushing boundaries and executing the best design possible given the aggressive constraints we had to work within," the same manager reportedly wrote to staff on March 1. "We would not want all our hard work to go to waste, so it’s important that we tie things off and document things properly." The cheap EV space has seriously heated up since rumblings around Tesla's new entry-level model began years ago. And nowhere is that truer than in China, where the automaker is [losing market share to a plurality of rivals]()—most notably BYD, which has been able to deliver competitive products at far lower prices while retaining the profit margins it needs to grow. Perhaps Musk is prepared to wave the white flag on that challenge and believes Tesla can more easily set itself apart through commercializing robotaxis. Assuming *Reuters* isn't "lying," of course. *Got tips? Send 'em to tips@thedrive.com* ## Author Adam is a Senior Editor at The Drive, concentrating on curating and developing the site's slate of daily journalism, from initial pitch to final copy edit. When he's not at his desk researching leads and working with writers, he's testing vehicles or reviewing racing games, new and old. He joined The Drive in 2023, following seven years of covering consumer technology and cars. A car lover and gamer since his earliest memories, Adam came to know the automotive world through video games. First it was Daytona USA, Sega Rally, and Ridge Racer; then came Need For Speed, which inspired an encyclopedic knowledge of '90s supercars, and, of course, Gran Turismo. If not for them, he'd assuredly be doing something else right now. Adam is based in the suburbs outside Philly, where there are ample roads for his hot hatch to stretch its legs. In his car, he's probably listening to indie rock, drum and bass, or Yankees baseball. ### Author social links [Bluesky]() [Instagram]() [LinkedIn]()